Correlation Between Snap and Thai OPP
Can any of the company-specific risk be diversified away by investing in both Snap and Thai OPP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Snap and Thai OPP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Thai OPP Public, you can compare the effects of market volatilities on Snap and Thai OPP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Snap with a short position of Thai OPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Thai OPP.
Diversification Opportunities for Snap and Thai OPP
Modest diversification
The 3 months correlation between Snap and Thai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Thai OPP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai OPP Public and Snap is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Snap Inc are associated (or correlated) with Thai OPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai OPP Public has no effect on the direction of Snap i.e., Snap and Thai OPP go up and down completely randomly.
Pair Corralation between Snap and Thai OPP
Given the investment horizon of 90 days Snap Inc is expected to generate 12.18 times more return on investment than Thai OPP. However, Snap is 12.18 times more volatile than Thai OPP Public. It trades about 0.13 of its potential returns per unit of risk. Thai OPP Public is currently generating about -0.21 per unit of risk. If you would invest 1,015 in Snap Inc on August 24, 2024 and sell it today you would earn a total of 127.00 from holding Snap Inc or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Snap Inc vs. Thai OPP Public
Performance |
| Timeline |
| Snap Inc |
| Thai OPP Public |
Snap and Thai OPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Thai OPP
The main advantage of trading using opposite Snap and Thai OPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap position performs unexpectedly, Thai OPP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thai OPP will offset losses from the drop in Thai OPP's long position.The idea behind Snap Inc and Thai OPP Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Thai OPP vs. Asia Sermkij Leasing | Thai OPP vs. Halcyon Technology Public | Thai OPP vs. Sun Vending Technology | Thai OPP vs. Peerapat Technology Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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